Mercy Medical Center lays off 29 workers

Low payments from public and private health insurance programs created financial strains that made the cuts necessary, Mercy President Bob Ritz said in a memo to employees.

Ritz, who has been Mercy's president since July 2013, said that additional cost-cutting moves have included keeping some vacant positions, allowing voluntary reduction of hours and eliminating certain management functions. Mercy is seeking to trim $38 million from its budget this year, the Register reported.

Several Iowa hospitals have laid off staff in the past year, among them Keokuk Area Hospital and Grinnell Regional Medical Center.